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Tag Archive: COMMON STOCK


Investing thoughts from Peter Lynch

Filed under: Finance Awareness — Leave a comment
April 3, 2013

It’s not mandatory that all good investors are good writers and visa viz that all good finance writers are good investors. imagesIt’s the experience of the people who is good or bad that counts. Here again some of the best remarks from Peter Lynch :

  1. When the operas outnumber the football games three to zero, you know there is something wrong with your life.
  2. Gentleman who prefers bonds don’t know what they are missing.
  3. Never invest in any idea you can’t illustrate with a crayon.
  4. You can’t see the future through a rear view mirror
  5. There’s no point paying Yo-Yo Ma to play a radio.
  6. As long as you’re picking a fund, you might as well pick a good one. View full article »
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Beating the Street with Peter Lynch

Filed under: Behavioral Finance — Leave a comment
February 8, 2013

Peter Lynch didn’t just beat the Street … he absolutely destroyed it. Reflect on his record for a second. Lynch ran FUNNYFidelity’s Magellan Fund from 1977 to 1990, beating the S&P 500 in all but two of those years. He averaged annual returns of 29%. That’s a mind-blowing figure. It means that $1 grew to more than $27; if you invested as little as $37,000 with him in 1977, you were a millionaire in 1990.

Sharing some his thoughts towards the market :-

  1. When the operas outnumber the football games three to zero, you know there is something wrong with your life.
  2. Gentleman who prefers bonds don’t know what they are missing.
  3. Never invest in any idea you can’t illustrate with a crayon. 
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Recalling “Beating the Street”

Filed under: Finance Awareness — Leave a comment
August 14, 2012

 

When an industry gets too popular, nobody makes money there any more, and here are some of the best from Peter lynch work.

1.When the operas outnumber the football games three to zero, you know there is something wrong with your life.

2.Gentleman who prefers bonds don’t know what they are missing.

3.Never invest in any idea you can’t illustrate with a crayon.

4.You can’t see the future View full article »

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2012 Mid Year World economy towards the path of Bailouts & Bankruptcies

Filed under: Economies — 1 Comment
June 30, 2012

Well its the last day of the month and the world economy standing in the mid of year 2012. Lets try to pull the events by connecting the dots and see where the world is :
1) After months weeks years of posturing and denial Spain and Cyprus formally requested aid from Europe bailout funds. More so they have officially confessed to their insolvency and the insolvency of their banking system.
Spain 10 year bond yield breached the worst level and it touched the 7% in return many od the Spain bank ratings got junk by Moodys

2) Over in the US, the city of Stockton, California filed for bankruptcy this week… View full article »

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Investing in the Market : Recalling The Golden Rules of Peter lynch

Filed under: Economies, Efficient Markets — 1 Comment
March 19, 2012

On an average the Indian market has given a 19% return in the last financial year that is the 3rd highest return after Egypt & Brazil who gave the better returns. The underlying is how many made the money because the markets where volatile , ruthless and driven by crisis over the year.

Wondering whether the 20 golden rules holds true for today’s market scenario :

  1. Your investor’s edge is not something you get from Dalal/Wall Street experts. It’s something you already have. You can outperform the experts if you use your edge by investing in companies or industries you already understand.
  2. Over the past 3 decades, the stock market has come to be dominated by a herd of professional investors. Contrary to popular belief, this makes it easier for the amateur investor. You can beat the market by ignoring the herd.
  3. Often there is no correlation b/w success of a company’s operations and the success of its stock over a few months or even years. In the long-term there is 100% correlation b/w the success of the company and the success of the stock. This disparity is the key to making money: it pays to be patient, and to own successful companies.
  4. You have to know what you own, and why you own it. “This baby is a clinch to go up!” dosen’t count.
  5. Long shots almost always miss the mark

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Markets & The Emotions :-

Filed under: Economies — Leave a comment
March 17, 2012

Greed is good !! well that’s the tag line on the wall street but how much that is more dependent on your emotion.In the past I did some stories on it and here is great work by Edward zones on the human emotions  and market cycle..

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PRIMARY MARKET – Do grading of IPO help?

Filed under: Economies, Financial Jargons, Financial media articles, Trending Brokers — 2 Comments
February 29, 2012

As MCX hit the roof top in the IPO market and subscribed 54 times on robust demand, was wondering how many of the investor bother to see that it was graded 5 star from the CRISIL. Here is a research proposal that could be worked upon on the IPO grading :-

On the 30th April 2007 SEBI decided to make grading of all IPOs mandatory. Grading makes additional information available for the investors, in the sense that it is supposedly an objective opinion of a credit rating agency arrived at after analyzing business and financial prospects, management quality and corporate governance practices etc of the issuer. Grades represent relative assessment of the fundamentals of the issue compared to other listed equity securities. Now that the IPO grading is about to complete one year, we seek to assess its impact on the primary market of equity shares.

Intuitively, we feel that grading should have direct effect on subscription statistics. Issues with grading of 3 or below should attract less subscription and issues of grading 4 or 5 should attract more subscription. It means that by and large the variability in subscriptions of different issues (i.e. if an issue gets p times subscribed, the variability in p) should rise after introduction of grading. If investors are risk avers, and if they trust grading, more monies should go to better graded issues. View full article »

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Private Equity : Other People’s Money

Filed under: Economies, Market - Outlook, Merchant Banking — 4 Comments
February 6, 2012

On my way from Mumbai to Bhopal last saturday was fortunate enough to watch the movie Other People’s Money . As I was more curious to know about the heated debate in US whether Private Equity to be termed as Hero or Villan. Those of you who has seen the Wall street series and remember Gordon Gekko,a character resembling popular culture for unrestrained greed (with the signature line, “Greed, for lack of a better word, is good”), often in fields outside corporate finance.

Let us try to understand Private Equity (PE) :

Private equity generally make investments in the operating companies through a variety of loosely affiliate investment strategies leveraged buyout, venture capital and growth capital.Typically, a private equity firm will raise pools of capital, or private equity funds that supply the equity contributions for these transactions.

They have been always in news as people see them as , private equity and job destruction aren’t the source of our employment woes. Rather, it is the clampdown on innovation. Some of the research claims that Private equity ownership resulted in both more rapid job destruction and faster job creation than other forms of ownership.
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Europe under Fire by Fitch & Facebook All set too Fire

Filed under: Economies, Financial Crisis, Market - Outlook — 11 Comments
January 28, 2012

http://sandyyadav.comThe dark clouds are hanging over Europe, and there are rumors that Greece may Exit Euro. Yesterday Fitch the rating agency dented and downgrades Spain and Italy each by two notches, Belgium by one. Ireland affirmed at BBB+. Luck of the Irish! it was like a bomb but it was already discounted by the market  and market not surprised by Fitch downgrades Euro remained higher against Dollar even after downgrades.

But Fitch was not a news maker, it was non other than Facebook raised the curtains which is ready all set for IPO filing, here is the big estimate whether market will discount this or not.They say $100B now… it will bump up to $115B by time of IPO… then $130B on first day out….
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India joining the bandwagon stands with Japan, China and Russia

Filed under: Economies — 2 Comments
January 23, 2012

Press Trust of India confirmed  that “India and Iran have agreed to settle some of their $12 billion annual oil trade in rupees, resorting to the restricted currency after more than a year of payment problems in the face of fresh, tougher U.S. sanctions.”

This is with response to few weeks when the US and Europe pretended that all is well .For anyone wondering how the abandonment of the dollar reserves status would look like reference, not with a bang, but a whimper or in this case a whole series of bilateral agreements that quietly seeks to remove the US currency as an intermediate.

As it looks prominent the world’s second China and third largest Japan economies will bypass the dollar by engaging them self in the direct currency trade, and few weeks back there was a bilateral contract between China and Russia where they drop dollar as a currency and involved in direct currency trade.
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